On January 1, 2021, Cameron Inc. bought 30% of the outstanding common stock of Lake Construction Company for $600 million cash, giving Cameron the ability to exercise significant influence over Lake's operations. At the date of acquisition of the stock, Lake's net assets had a fair value of $800 million. Its book value was $700 million. The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference. Lake's net income for the year ended December 31, 2021, was $300 million. During 2021, Lake declared and paid cash dividends of $20 million. The buildings have a remaining life of 5 years. Required: 1. Complete the table below and prepare all appropriate journal entries related to the investment during 2021, assuming Cameron accounts for this investment by the equity method. 2. Determine the amounts to be reported by Cameron. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Complete the table below. (Enter your answers in millions, (i.e., 10,000,000 should be entered as 10). (s in millions) Investee Net Assets Ownership Interest Difference Attributable to: Net Assets Purchased $ 600 Cost Fair Value Lake Construction's assets Book Value Lake Construction's assets $ 0 Years Adjustment Depreciation adjustment: Investment revenue Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Prepare all appropriate journal entries related to the investment during 2021, assuming Cameron accounts for this investment by the equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, i.e., 10,000,000 should be entered as 10).) No Transaction Debit Credit General Journal Investment in equity affiliate Cash Investment in equity affiliate Investment revenue Cash Investment in equity affiliate Investment revenue Investment in equity affiliate Required 1 Calculation Required 2 > Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Determine the amounts to be reported by Cameron. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10).) ($ in millions) a. Investment in Cameron's 2021 balance sheet b. Investment revenue in the income statement c. Investing activities in the statement of cash flows On January 1, 2021, Cameron Inc. bought 30% of the outstanding common stock of Lake Construction Company for $600 million cash, giving Cameron the ability to exercise significant influence over Lake's operations. At the date of acquisition of the stock, Lake's net assets had a fair value of $800 million. Its book value was $700 million. The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference. Lake's net income for the year ended December 31, 2021, was $300 million. During 2021, Lake declared and paid cash dividends of $20 million. The buildings have a remaining life of 5 years. Required: 1. Complete the table below and prepare all appropriate journal entries related to the investment during 2021, assuming Cameron accounts for this investment by the equity method. 2. Determine the amounts to be reported by Cameron. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Complete the table below. (Enter your answers in millions, (i.e., 10,000,000 should be entered as 10). (s in millions) Investee Net Assets Ownership Interest Difference Attributable to: Net Assets Purchased $ 600 Cost Fair Value Lake Construction's assets Book Value Lake Construction's assets $ 0 Years Adjustment Depreciation adjustment: Investment revenue Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Prepare all appropriate journal entries related to the investment during 2021, assuming Cameron accounts for this investment by the equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, i.e., 10,000,000 should be entered as 10).) No Transaction Debit Credit General Journal Investment in equity affiliate Cash Investment in equity affiliate Investment revenue Cash Investment in equity affiliate Investment revenue Investment in equity affiliate Required 1 Calculation Required 2 > Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Determine the amounts to be reported by Cameron. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10).) ($ in millions) a. Investment in Cameron's 2021 balance sheet b. Investment revenue in the income statement c. Investing activities in the statement of cash flows
